Are
You Going To Entropy Faire?
James
Howard Kunstler
1
April 2013
Things
are breaking loose. Holes have appeared in the fabric of fraud and
lies that passes for the world money system. They are black holes,
gravitationally sucking in the things breaking loose, and as these
things cross their event horizons, they will never be seen again.
These things I speak of are the collateral for vast nebulae of
falsely generated debts and obligations that were never intended to
be honored (i.e. regarded as real). As they vanish down the wormholes
of time, they take with them their pretenses of money value, meaning
they leave reverberations of impoverishment in the shadowy place that
the real world has become.
The process described
above - an alchemy of physics - will begin to shed light where the
shadows have been, revealing a much harsher world in sharp contours
and shocking color, for instance: red, the color of ink representing
losses on real balance sheets of every household, every enterprise,
and every government the whole world round. A scramble for safety now
ensues, not just to lay hold of anything with remaining real
"moneyness," but for the resources that drive the kind of
economies we have. In other words, for gold and silver, and for oil
and gas.
Of course, great
geopolitical forces spin in the background. Only idiots subscribe to
the paranoid fantasies of "one world government" and
"global currencies." In the scramble underway, the things
falling apart include units of governance, breaking into smaller
pieces: empires, nation states. These will include the unraveling
European Union but also the matrix of agreements and protocols that
binds together the West - everything from the IMF to the G-7 to the
World Bank - into an entropy express. One rather extreme scenario I
do subscribe to was laid out by blogger JIM WILLIE recently: the
effort by Russia, China, and others to isolate and neutralize the US
dollar as the world's so-called reserve currency by systematically
converting holdings of US Treasury bills into gold wherever possible,
and to thereby diminish the baleful influence of the Imperial US
behemoth. They are assisted in this endeavor by the US itself in its
bungling efforts to manipulate and suppress gold prices, as well as
our prevarications as to exactly how much gold remains in the various
places it is supposed to be stashed - Fort Knox, West Point, and the
sub-basement labyrinth of the Federal Reserve Bank of New York -
generating ever-greater uncertainty about the extant world gold
supply, and hence its value relative to things like currencies.
Nobody here can even ask the right questions.
While The New York
Times focuses on the momentous issue of real estate sales in the
Hamptons, Russia and China will build gold-backed currencies aimed at
monopolizing the trade in mineral and energy resources, leaving
America and much of Europe to freeze in the dark and sit on gasoline
lines at the empty filling stations. For a while that will work to
the East's advantage - until it becomes clear that the entropic
contraction of industrial economies is for everyone as we veer into a
literal world made by hand. That's right, sooner or later Russia and
China will get theirs, too. But in the meantime they have the ability
to make the story a lot more interesting.
There's plenty of
suspense this Easter weekend as observers nervously await the
breaking action, to find out how much the oft-cited fear of
confiscation has penetrated the regional money centers around Europe.
Slovenia, a fairy-tale republic somewhere between Austria and the
Duchy of Grand Fenwick, has been nominated by observers as the place
most likely to be whacked by EU treasure confiscators. It owes about
10 billion Euros to the EU entropy cloud, with exactly zero chances
of meeting its obligations. But then, it's in the nature of such
non-linear event sequences that the shadows of the black swan's wings
will pass over Slovenia and alight on a chimney-top in some utterly
surprising place, say, Latvia or perhaps even Italy. In any case,
European money will be on fire and a lot of that smokin' moolah
surely will wend its way into the US equity markets under the
illusion of safety. It's all just an accident waiting to happen.
Money is not what it used to be and not what it seems.
There must be an
inverse relationship between the juiced S & P index and the IQs
of the public figures in America who pretend to be able to think, so
that there are now just six remaining people in the political arena
who can articulate the various parts of the mega-swindle that besets
us: Bill Black, Jim Rickards, Bill Moyers, Elizabeth Warren, Bernie
Sanders, and David Stockman. Stockman is out with a new book, The
Great Deformation, that manages to concentrate all the requisite
outrage in one gale of rectified objurgation. It is a pleasure to
read Stockman - former budget director under Reagan and Michigan
congressman - call out the villains from Reagan to Bernanke to
Paulson to Rubin and scores of others in the most opprobrious terms.
Stockman characterizes the financial action of recent decades a
"leveraged buyout of the USA" and it sure looks that way.
If you travel around the towns of the upper Hudson Valley - once an
industrial corridor full of Jimmy Stewart type burgs - it's beginning
to look like the country Borat grew up in. Everything of value that
wasn't nailed down was taken, and everything that remains is broken,
including the ragged population.
On Sunday night, wire
stories had Cyprus close to "going Icelandic," that is,
hoisting the middle finger to Brussels and repudiating the money
owed. That option may end up seeming more attractive to virtually
everybody in the broke world, including even the young college loan
debt donkeys of the USA, groaning under their loads as they stand
idle in the barren fields of unemployment. Imagine, all those people
thinking that nirvana is a place of cold and darkness... with the
vague odor of rotting fish hanging in the still air.
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